Here comes quarter horse racing

Company buys $1M land parcel

Published: Thursday, January 2, 2014 at 6:24 p.m.

Last Modified: Thursday, January 2, 2014 at 6:24 p.m.

Marion County is another step closer to having a live horse racing venue — albeit quarter horse racing — in the heart of thoroughbred country.

Late last month, Marion Gaming Management LLC paid $1.16 million for 50 acres of agricultural property west of U.S. 301 and south of County Road 42.

The company's intent is to build a quarter horse race track. It already has secured a pari-mutuel license from the state.

The property off Southeast 180th Street will be part of the racing complex, said Steve Gray, a local attorney and one of Marion Gaming's managers. He said the company plans to close soon on an adjacent property.

Construction is scheduled for later this year.

Thomas Lane and his wife, Roberta, sold the property to Marion Gaming.

Steve Fisch, president of the Florida Quarter Horse Racing Association, said Marion Gaming's move could be a good thing for the quarter horse industry and Marion County.

"If it's done in the manner that it should be done," he said.

That means having the races sanctioned by the American Quarter Horse Association and following its guidelines, which call for operators to offer 40 days of racing each year with at least eight contests on each race day, Fisch said.

But the quarter horse, pari-mutuel license that Marion Gaming holds opens more doors than simply allowing the company to offer racing.

Florida statutes say anyone who holds a pari-mutuel license and runs horse races is also eligible to operate card rooms.

Industry experts say the profits from card rooms can far outweigh the slim margins of profit tracks can make through pari-mutuel wagering, in which fans bet on races held at other Florida or out-of-state tracks.

Florida law mandates that 50 percent of card room profits go to thoroughbred horse racing purses. But since quarter horse racing has no such requirement, more profits can go directly to track owners.

Florida requires only that the quarter horse tracks have on file a purse agreement with either the Florida Quarter Horse Racing Association or another horseman's group at the track.

As a result, quarter horse tracks could end up giving only a small fraction of their card room profits to horse racing purses, marginalizing the sport for more profitable card rooms.

Meanwhile, people in the quarter horse industry, like Fisch, also fear that Florida's horse racing laws for quarter horse tracks are too complex and convoluted and could allow track owners to hold too few races each year or "races" with as few as two horses competing.

Tajiana Ancora-Brown, director of communications with the Florida Department of Business and Professional Regulation, the agency that oversees the licensing process, said the issue of how many races must be held is complex and dependent on many factors.

Gray said Marion Gaming plans on 20 race days and eight races per day, but has not yet decided which days those races would be held or the number of horses per race.

Gray said the racing complex will have a card room. "That's what pays for the racing," he said.

As for the size of the facility, and how many people it will employ, Gray said it was premature to say. No architectural plans have been drawn.

Ocala Breeders Sales Co. also holds a quarter horse license. But it does not hold races, other than a one-day annual, non-betting thoroughbred race that features horses sold through its auctions.

OBS also leases its jai alai facility on County Road 318 to Second Chance Jai Alai. Because it holds jai alai games, it is also allowed to operate a card room.

Card rooms are big business in Florida. During the 2012-13 fiscal year, Ocala Jai Alai reported $3.6 million in gross receipts from its card room alone, according to the Florida Department of Business and Professional Regulation. It paid more than $360,000 in state taxes on those earnings.

Combined revenues from all of Florida's card rooms was almost $133 million last fiscal year, of which about $13.3 million went to state taxes. The amount bet on all of Florida's pari-mutuel events during the same period was almost $900 million, about a third of which was off track at a pari-mutuel facility.

But many entities that hold quarter horse pari-mutuel licenses hope that one day Florida lawmakers will allow slot machines throughout the whole state. Currently, they are allowed only in Broward and Miami-Dade counties and in Seminole Indian casinos.

That is why many people holding quarter horse licenses are preparing their tracks and card rooms.

During fiscal 2012-13, net revenues from slot machines in Florida exceeded $436 million. Nearly $153 million went toward state taxes.

Whether Marion Gaming ever has an effect on OBS and Ocala Jai Alai — and whether Marion County can sustain two card rooms — is still unknown, said OBS President Tom Ventura.

"I think it's difficult to determine, but it's a big county," Ventura said. "What happens in the future has yet to be seen."

<p>Marion County is another step closer to having a live horse racing venue — albeit quarter horse racing — in the heart of thoroughbred country.</p><p>Late last month, Marion Gaming Management LLC paid $1.16 million for 50 acres of agricultural property west of U.S. 301 and south of County Road 42.</p><p>The company's intent is to build a quarter horse race track. It already has secured a pari-mutuel license from the state.</p><p>The property off Southeast 180th Street will be part of the racing complex, said Steve Gray, a local attorney and one of Marion Gaming's managers. He said the company plans to close soon on an adjacent property.</p><p>Construction is scheduled for later this year.</p><p>Thomas Lane and his wife, Roberta, sold the property to Marion Gaming.</p><p>Steve Fisch, president of the Florida Quarter Horse Racing Association, said Marion Gaming's move could be a good thing for the quarter horse industry and Marion County.</p><p>"If it's done in the manner that it should be done," he said.</p><p>That means having the races sanctioned by the American Quarter Horse Association and following its guidelines, which call for operators to offer 40 days of racing each year with at least eight contests on each race day, Fisch said.</p><p>But the quarter horse, pari-mutuel license that Marion Gaming holds opens more doors than simply allowing the company to offer racing.</p><p>Florida statutes say anyone who holds a pari-mutuel license and runs horse races is also eligible to operate card rooms.</p><p>Industry experts say the profits from card rooms can far outweigh the slim margins of profit tracks can make through pari-mutuel wagering, in which fans bet on races held at other Florida or out-of-state tracks.</p><p>Unlike thoroughbred tracks with card rooms, quarter horse racing does not require a set percentage of card room profits to go toward horse racing purses.</p><p>Florida law mandates that 50 percent of card room profits go to thoroughbred horse racing purses. But since quarter horse racing has no such requirement, more profits can go directly to track owners.</p><p>Florida requires only that the quarter horse tracks have on file a purse agreement with either the Florida Quarter Horse Racing Association or another horseman's group at the track.</p><p>As a result, quarter horse tracks could end up giving only a small fraction of their card room profits to horse racing purses, marginalizing the sport for more profitable card rooms.</p><p>Meanwhile, people in the quarter horse industry, like Fisch, also fear that Florida's horse racing laws for quarter horse tracks are too complex and convoluted and could allow track owners to hold too few races each year or "races" with as few as two horses competing.</p><p>Tajiana Ancora-Brown, director of communications with the Florida Department of Business and Professional Regulation, the agency that oversees the licensing process, said the issue of how many races must be held is complex and dependent on many factors.</p><p>Gray said Marion Gaming plans on 20 race days and eight races per day, but has not yet decided which days those races would be held or the number of horses per race.</p><p>Gray said the racing complex will have a card room. "That's what pays for the racing," he said.</p><p>As for the size of the facility, and how many people it will employ, Gray said it was premature to say. No architectural plans have been drawn.</p><p>Ocala Breeders Sales Co. also holds a quarter horse license. But it does not hold races, other than a one-day annual, non-betting thoroughbred race that features horses sold through its auctions.</p><p>OBS does, however, offer pari-mutuel wagering for Florida and out-of-state tracks.</p><p>OBS also leases its jai alai facility on County Road 318 to Second Chance Jai Alai. Because it holds jai alai games, it is also allowed to operate a card room.</p><p>Card rooms are big business in Florida. During the 2012-13 fiscal year, Ocala Jai Alai reported $3.6 million in gross receipts from its card room alone, according to the Florida Department of Business and Professional Regulation. It paid more than $360,000 in state taxes on those earnings.</p><p>Combined revenues from all of Florida's card rooms was almost $133 million last fiscal year, of which about $13.3 million went to state taxes. The amount bet on all of Florida's pari-mutuel events during the same period was almost $900 million, about a third of which was off track at a pari-mutuel facility.</p><p>But many entities that hold quarter horse pari-mutuel licenses hope that one day Florida lawmakers will allow slot machines throughout the whole state. Currently, they are allowed only in Broward and Miami-Dade counties and in Seminole Indian casinos.</p><p>That is why many people holding quarter horse licenses are preparing their tracks and card rooms.</p><p>During fiscal 2012-13, net revenues from slot machines in Florida exceeded $436 million. Nearly $153 million went toward state taxes.</p><p>Whether Marion Gaming ever has an effect on OBS and Ocala Jai Alai — and whether Marion County can sustain two card rooms — is still unknown, said OBS President Tom Ventura.</p><p>"I think it's difficult to determine, but it's a big county," Ventura said. "What happens in the future has yet to be seen."</p><p><i>Contact Fred Hiers at 867-4157 or fred.hiers@starbanner.com.</i></p>